Desk Report:

The long-standing dollar crisis in the country has eased somewhat following the strict stance of the central bank. Other financial institutions are also on the alert after the banks and money exchangers involved in reckless dollar manipulation were brought under punishment. At present, the dollar crisis in the country is somewhat reduced. At the same time, remittances have seen a rising trend for several consecutive months.

Concerned say that banks once became desperate to buy remittances as LC payments could not be made. As a result, the price per dollar rose to 120 taka. But now per dollar is available at Tk 114 to Tk115. The dollar’s official price has fallen to Tk 110 as expatriate income devalues ​​the dollar. At the same time, the liquidity crisis in the banks has also reduced a little.

Reckless banks and money changers involved in dollar manipulation have been brought under penalty. Other financial institutions are also cautious.

According to the sector concerned, several initiatives have come in handy in reducing the dollar crisis. One of these is the decrease in imports due to the strict imposition of Bangladesh Bank. Similarly, remittances and export earnings have increased due to the move away from a tight stance on the dollar. Besides, the crisis has eased somewhat due to the facility of swapping money against the dollar.

Since the beginning of the Russia-Ukraine war, the dollar crisis has started in the country. Due to this war between the two countries, the price of food products including fuel increased in the global market. This suddenly increases the cost of imports. In June 2022, Bangladesh had to pay the import debt of 837 crore dollars amid the Russia-Ukraine war. After that, the central bank imposed strictness on the opening of letters of credit (LC). Up to 100% cash deposit obligation is given against LC opening.

As a result, the import liability decreases. The lowest import duty payment in several months was last February. In this month, the payment of import liability is 467 crore dollars. In January, the previous month, the payment of import debt was 596 crore dollars. Import liability payment is the actual dollar cost of the respective month. As a result, it can be seen that the pressure on the dollar has decreased somewhat.

In the meantime, remittances are booming. This is one of the indicators of the economy towards some continuous improvement. Last December, expatriates sent $199 crore in remittance, $211 crore in January, $216 crore in February. In the first 26 days of March, expatriate income reached $172.50 crore. The relevant department of the central bank is expecting that the remittance will exceed two billion dollars this month as well.